Natural disasters, such as wildfires and coastal flooding, raise questions about what insurance will cover (and what it won’t).

The homeowners insurance market totals some $15 trillion, with prices up 74% since the Great Recession after adjusting for inflation, per a Harvard study.

A recent rule change could cause a spike in insurance premium for homeowners across California, as the costs of the Los Angeles area wildfires are passed onto them in a way that was not allowed in the past.

California's Fair Plan, the state's insurer of last resort, may be unable to pay billions in claims arising from the Los Angeles fires and may require a bailout that could ultimately be paid by homeowners statewide.